barCreated with sketchtool.
Byju's admitted to insolvency resolution procedure, NCLT orders in BCCI's plea
Jul 16, 2024 01:32 pm
By
infodivyadelhi

Divya Delhi In a BCCI plea, the National Company Law Tribunal (NCLT) allowed Byju's parent Think and Learn to insolvency resolution on July 16.The tribunal designated Pankaj Srivastava as interim resolution professional to oversee the company until the lenders create the Committee of Creditors."The Interim Resolution Professional shall after collation of all the claims received against Think and Learn Pvt Ltd the Corporate Debtor and thedetermination of the financial position of the Corporate Debtor constitutes a Committee of Creditors," the decision read.Byju's arbitration motion was denied by the NCLT.The NCLT found no reason to deny the BCCI's petition under section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 to initiate a Corporate Insolvency Resolution Process (CIRP) against Byju's since debt and default are established.According to the IBC, creditors will take over company control from management. While in CIRP, Byju's assets cannot be transferred. Byju's cannot be sued or pursued under IBC.The corporation is under moratorium, which freezes its obligations and interest until the NCLT orders it lifted. The COC will manage the company through the IRP/RP for 330 days. If it can sell the company to an interested party through a bidding process, it can revive it. Unless the CoC finds a buyer within 330 days, the NCLT will liquidate it.Raveendran or any firm board member can challenge this ruling to the NCLAT and Supreme Court. The court can lift the CIRP at will.Hearings were held on November 28 last year for the BCCI's September 8, 2023 case. The NCLT notified Byju's during the first hearing and requested its response.The November 2023 BCCI order alleged Byju's had defaulted on Rs 158 crore. “It is stated that the general notice was issued to Byju's via email dated 06.01.2023 and the default amount of Rs 158 crore, excluding TDS as reflected,” the NCLT ruling from November